[theqoo] [EXCLUSIVE] "HYBE BETRAYED MIN HEEJIN FIRST THROUGH MEDIAPLAY" CRITICIZED BY THE COURT

Entertainment agency HYBE suffered a “complete defeat” in its shareholder agreement lawsuit against Min Heejin. The court rejected most of HYBE’s claims and emphasized that HYBE had first damaged the relationship of trust. The ruling has drawn attention as the court explicitly pointed out what the industry had long criticized as HYBE’s excessive mediaplay.

According to the first-instance judgment obtained on the 20th, the Civil Division 31 of the Seoul Central District Court (Presiding Judge Nam In-soo) stated that HYBE was the party that brought the conflict into the open, meaning HYBE initiated the media exposure.

“HYBE started the mediaplay… It was HYBE that broke the trust”

The court said that protest emails sent by Min’s side on April 3 and April 16, 2024, indicated that the conflict remained internal at that stage. However, a solo news report released by HYBE on April 22, 2024, brought the conflict fully into the public sphere. The court added that Min’s press conference later that same day appeared to be based on her right of rebuttal.

The court also noted the timing of media reports regarding HYBE’s audit. On April 22, 2024, HYBE launched an audit of ADOR, demanded Min’s resignation as CEO, and began dismissal procedures. On the same day, an exclusive article titled “HYBE Launches Surprise Audit of ADOR Management, Home of NewJeans” was published.

While HYBE argued that Min’s side would have been willing to incur losses by selling ADOR shares at a low price backed by NewJeans members, the court said there was no evidence that HYBE had identified such risks in advance or taken appropriate measures.

Importantly, the court specified that HYBE’s stock price decline appeared to be the result of its own aggressive mediaplay. HYBE’s closing stock price fell significantly (7.8%) on April 22, 2024. The court stated that the drop seemed to reflect the public exposure of the conflict through the exclusive article and the subsequent escalation between both sides. HYBE had claimed in a criminal complaint for breach of trust that its market capitalization had fallen by 800 billion won, which the court viewed as reflecting this stock trend.

“Merely private talk without execution” Claims of “management takeover” and “poaching NewJeans” dismissed

The court rejected most of HYBE’s claims.

Regarding HYBE’s assertion that Min attempted to seize management control, the court acknowledged that Min’s side had explored ways to weaken HYBE’s control over ADOR and to independently control the company. However, these plans were premised on the breakdown of negotiations to amend the shareholder agreement and on exercising a put option in 2025, assuming HYBE’s consent. The court ruled that merely exploring such independence plans did not constitute a serious breach of the shareholder agreement.

The court also dismissed HYBE’s claim that Min attempted to “poach” NewJeans. It ruled that such actions fell within the permissible scope of managerial discretion and did not amount to liability for damages to the company.

In essence, the court determined that the alleged “betrayal” by Min’s side amounted to:

- Private discussions that were never carried out

- Hypothetical scenarios premised on HYBE’s consent

- HYBE, in contrast, had hastily initiated an audit and exposed the issue to the media, thereby breaking trust

“ILLIT is an imitation of NewJeans” The substance of the controversy

The court also viewed Min’s claim that ILLIT copied NewJeans as a legitimate expression of opinion. It ruled that her statement did not specify concrete individual elements but rather expressed that ILLIT’s overall impression was similar to NewJeans, which constituted an opinion or value judgment rather than a factual allegation.

Chat messages between Min and V of BTS were also admitted as evidence. In the messages, V reportedly said, “(There’s always talk of plagiarism; there’s never a time when it doesn’t come up.) Yeah… I also saw it and thought, ‘This seems similar.’” It was also accepted that HYBE Chairman Bang Si-hyuk had produced ILLIT’s debut album.

“NewJeans valued at 2 trillion won, on par with BLACKPINK” Recognition of Min’s achievements

The court compared NewJeans with BLACKPINK, stating that among girl groups, BLACKPINK was the only comparable group. It estimated that ADOR’s appropriate value within two years could reach around 2 trillion won.

The ruling noted that Min’s side had estimated ADOR’s market value in early 2024 at between 800 billion and 1.5 trillion won. After BLACKPINK’s performance drove YG Entertainment to a peak market cap of about 1.8 trillion won, its stock later declined due to contract renewal risks. In comparison, NewJeans was estimated at around 2 trillion won, on the premise that the alliance among NewJeans, Min Hee-jin, and HYBE would continue.

Min’s criticisms of HYBE were also admitted as evidence. In a January 25, 2024 meeting, she reportedly said that if HYBE had a conscience, it should not just exploit NewJeans, and that both internal and external parties, including Pledis Entertainment and Belift Lab, were copying NewJeans. She also stated that despite pressure from former HYBE CEO Park Ji-won to create a “male version of NewJeans,” she had no desire to do so while seeing everything being taken from her.

The court cited the prosecution’s decision not to indict Min on breach-of-trust charges, noting that her actions appeared to stem from deep resentment based on concerns about quasi-illegal album sales practices within groups and copying issues among subsidiaries, rooted in entertainment business ethics and creative integrity.

As a result of the ruling, HYBE must pay 25.6 billion won in stock purchase proceeds to Min and others. All of HYBE’s claims were dismissed. HYBE filed an appeal on the 19th and is contesting the decision.

source: https://m.entertain.naver.com/now/article/144/0001098910

original post: here

1. The mediaplay was seriously done so dirtily 

2. The moment I saw TheQoo's opinion change side to side with HYBE, I knew that this was their fundamental mediaplay at work 

3. They f*cking did well on the mediaplay turning it into an inner company fight. It makes me realize how well NewJeans held it together

4. BLACKPINK level? ㅋㅋㅋ I'm not sure 

5. HYBE is so low 

6. Everyone saw how they went to the media and was attacking them so much, I was afraid they'd k**l someone over this. This is an obvious outcome 

7. HYBE did all this to erase NewJeans and used Min Heejin's betrayal as a reason 

8. Min Heejin fighting 

9. I f*cking miss NewJeans, how did they even hold back for so long in this company?

10. So why is ILLIT the victims again? ㅋㅋㅋㅋ And where is that one person who was claiming to be the victim in IZONE?

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